Weak Existing-Store Customer Traffic and the Need to Expand the Customer Base

「In the hotel and convenience-store businesses, revenue and guest numbers increased and earnings improved, supported by strong domestic leisure demand during the spring holiday season and increased foot traffic driven by growing inbound demand.」

「In addition to the impact of events being held daily at large theme parks, commercial facilities, arena facilities and large exhibition venues near our core stores, customer traffic increased at stores adjoining our hotels against a backdrop of steady domestic lodging demand and increased inbound consumption, resulting in sales growth.」

「Because of sluggish lodging demand in the area, evening and nighttime store traffic declined to some extent compared with the interim consolidated accounting period of the previous consolidated fiscal year.」

「In addition to a substantial increase in hotel guests, particularly in connection with leisure activities, as large-scale events were held daily, we continued to actively pursue group lodging demand.」

「Events at large theme parks, commercial facilities and large exhibition venues near our core stores were held daily, substantially increasing attendance. At stores adjoining our hotels, the number of hotel guests was also bolstered by steady domestic lodging demand and increased inbound consumption, resulting in higher evening and nighttime store traffic and continued growth in existing-store sales.」

「Following the designation of COVID-19 as a Class 5 infectious disease in early May 2023, events at large theme parks, commercial facilities and large exhibition venues near our core stores were held daily at scales comparable to or exceeding those before the pandemic, substantially increasing attendance. At stores adjoining our hotels, customer traffic during the evening and night also increased as the number of hotel guests rose, resulting in continued sales growth.」

「Events at large theme parks, commercial facilities and large exhibition venues near our core stores were held as scheduled, substantially increasing attendance. At stores adjoining our hotels, customer traffic during the evening and night also increased as the number of hotel guests rose, resulting in continued sales growth.」

「Since autumn last year, the pace of normalization of economic activity has accelerated, and leisure demand has continued to recover. In addition, large-scale events were generally held as usual at a large exhibition venue near our core stores, substantially increasing attendance. At stores adjoining our hotels, customer traffic during the evening and night also increased as the number of hotel guests rose, resulting in continued sales growth.」

「Leisure demand continued to recover, and large-scale events were generally held as usual from summer onward at a large exhibition venue near our core stores, substantially increasing attendance. At stores adjoining our hotels, customer traffic during the evening and night also increased as the number of hotel guests rose, resulting in a significant increase in sales.」

「Leisure demand continued to recover following the lifting of the priority preventive measures to prevent the spread of disease from mid-March. In addition, large-scale events were generally held as usual from summer onward at a large exhibition venue near our core stores, substantially increasing attendance. At stores adjoining our hotels, customer traffic during the evening and night also increased as the number of hotel guests rose, resulting in a significant increase in sales.」

「Following the lifting of the priority preventive measures to prevent the spread of disease from mid-March, leisure demand continued to recover. In addition, a large-scale anime event was held in August at a large exhibition venue near our core stores for the first time in 3 years, and the resulting substantial increase in visitors led to a significant increase in sales.」

「At stores located near large exhibition venues and tourist facilities, sales continued to recover gradually year on year. However, events were not held at large exhibition venues from June onward in connection with the Tokyo Olympic Games, and the Games were held without spectators, preventing a recovery in tourists visiting the area. As a result, customer traffic struggled in July and August, the peak months for annual sales.」

「At stores located near large exhibition venues and tourist facilities, sales have continued to improve as various events have gradually resumed. However, large-scale events continue to be canceled or subject to attendance restrictions, and a further period of time is expected to be required for sales to recover fully.」

「At stores located near large exhibition venues and tourist facilities, customer traffic declined sharply because various events were canceled, the number of tourists fell dramatically and the daytime population in central Tokyo decreased.」

「Total-store sales declined following a substantial decrease in the number of stores in the business. In addition, customer traffic declined sharply at some stores because nearby facilities were closed for full-scale renovation work ahead of the Tokyo Olympic Games, resulting in declines in both segment sales and profit.」

「As the trading area per store has continued to shrink because of the net increase in the total number of stores, existing-store customer traffic at each major chain has remained below the previous year, making efforts to improve the ability of individual stores to attract customers an ongoing challenge.」

「Total-store sales declined following a substantial decrease in the number of stores in the business. In addition to recording various expenses related to stores subject to transfer, customer traffic at nearby facilities of some stores fell sharply because the facilities began full-scale renovation work ahead of the Tokyo Olympic Games, resulting in declines in both segment sales and profit.」

「Total-store sales declined following a substantial decrease in the number of stores resulting from the restructuring of the convenience-store business. In addition to recording various expenses related to stores subject to transfer, existing-store customer traffic compared with the previous year continued to trend below the previous year, resulting in declines in both segment sales and profit.」

「Sales of heated tobacco products remained strong and supported sales. However, existing-store customer traffic struggled in October because of the successive passage of typhoons through the Tokyo metropolitan area, while selling prices for electricity continued to trend higher than the previous year. As a result, selling, general and administrative expenses, including utility costs, increased, and both segment sales and profit declined.」

「As existing-store customer traffic at each major chain has continued to trend below the previous year, efforts to improve the ability of individual stores to attract customers remain an issue.」

「As existing-store customer traffic at each major chain has continued to trend below the previous year, efforts to improve the ability of individual stores to attract customers remain an issue. As of the end of the first quarter of the current consolidated fiscal period, the number of stores, including franchised stores, was 109, unchanged from the end of the previous fiscal year because there were no openings or closures. Although existing-store sales were broadly flat, segment profit declined because several high-sales stores were temporarily closed for seismic reinforcement or interior renovation work, and because the number of stores had declined from the same period of the previous year.」

「During the period, 1 store was opened and 3 stores were closed, bringing the number of stores, including franchised stores, to 109 as of the end of the consolidated fiscal year. In addition, total-store sales declined because existing-store customer traffic struggled amid the decrease in the number of stores and the impact of several of our core stores and tenants in nearby or adjoining office buildings relocating because of redevelopment or relocation projects.」

「With existing-store customer traffic compared with the previous year continuing to trend weakly, efforts to improve the ability of individual stores to attract customers are becoming an issue.」

「Since spring this year, year-on-year customer traffic at existing stores has continued to trend weakly, making efforts to improve store traffic an increasingly important issue.」

「Since February this year, year-on-year customer traffic at existing stores has remained weak, making it increasingly necessary to focus on expanding the customer base.」